Winmark Corporation reported its financial results for the second quarter and first half of 2026, revealing total revenues of $22.0 million for the quarter, a 7.6% increase from $20.4 million in the same period last year. For the first six months, revenues reached $42.8 million, slightly up from $42.3 million in the prior year. The company's net income for the second quarter was $10.4 million, compared to $10.6 million in the same quarter of 2025, while net income for the first half of 2026 was $19.6 million, down from $20.6 million in the previous year. Earnings per share for the second quarter were $2.90, a decrease from $3.00 in the same period last year.
The company experienced a notable increase in royalties, which rose to $20.1 million in the second quarter, up from $18.7 million in the same quarter of 2025, primarily driven by higher franchise retail sales and an increase in the number of franchise stores. However, leasing income dropped to zero in the second quarter of 2026, down from $46,600 in the same period last year, as the company completed the run-off of its leasing portfolio by the end of 2025. Merchandise sales also saw a slight increase, totaling $859,300 in the second quarter compared to $803,600 in the same quarter of 2025.
Winmark's selling, general, and administrative expenses increased by 13.9% to $7.5 million in the second quarter, attributed to higher compensation and marketing expenses. The company reported a total of 1,389 franchises operating under its various brands as of June 27, 2026, reflecting a net increase of 11 franchises since the end of 2025. The renewal rate for franchise agreements remained strong, with 100% of the 50 agreements available for renewal successfully renewed during the first half of 2026.
In terms of liquidity, Winmark ended the second quarter with $26.0 million in cash and cash equivalents, down from $28.9 million a year earlier. Operating activities generated $22.6 million in cash during the first half of 2026, a decrease from $24.1 million in the same period of 2025. The company utilized $2.3 million for investing activities, primarily related to software development costs, and $4.8 million for financing activities, which included $7.1 million in dividend payments. Winmark's debt obligations remain stable, with compliance maintained across its financial covenants.
Looking ahead, Winmark's management expressed confidence in the company's ability to generate sufficient cash flow to meet its operational needs and debt obligations through 2027. The company continues to focus on supporting franchise partners, opening new franchises, and managing expenses effectively to drive future growth.
About WINMARK CORP
Winmark Corporation is a franchisor specializing in value-oriented resale retail brands, including Plato’s Closet, Once Upon A Child, Play It Again Sports, Style Encore, and Music Go Round. The company supports entrepreneurs in operating franchise stores that buy, sell, and trade gently used merchandise across various categories, promoting sustainability and community recycling. Its business model emphasizes franchise growth, brand support, and value-driven consumer offerings in North America.
About 10-Q Filings
A 10-Q form is an important financial report that public companies in the United States must submit every three months. It gives a clear picture of a company's financial health and recent performance.
Key points about the 10-Q:
- Frequency: Companies file it three times a year, covering the first three quarters. The fourth quarter is covered in a more comprehensive annual report.
-
Content: It includes:
- Financial statements showing the company's current financial position
- Updates from management on the performance and projections of the business
- Information about potential risks the company faces
- Details on how the company is run internally
- Deadline: Must be filed within 40 or 45 days after the quarter ends, depending on the size of the company.
Our Methodology
AssetRoom is committed to providing timely summaries of news from public companies. We use AI to generate these summaries quickly, but they are not reviewed by human experts.
Our method:
- Data Collection: We continuously monitor for new filings (currently limited to US-listed stocks).
- AI-Powered Analysis: Our advanced AI system processes each filing, identifying key information and extracting relevant data.
- Summary Generation: The AI creates a concise, easy-to-understand summary of the filing, highlighting the most important points.
- Publication: The summary is immediately published on our platform, allowing users instant access to the latest information.
- Email users: We distribute round-up emails according to our users preferences, keeping them in the loop with the companies they follow.
Feedback & Corrections
Spot an error or have a suggestion? Contact us.